Text: H.R.3409 — 102nd Congress (1991-1992)All Information (Except Text)

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HR 3409 IH
102d CONGRESS
1st Session
 H. R. 3409
To prevent the proliferation of biological and chemical weapons.
IN THE HOUSE OF REPRESENTATIVES
September 25, 1991
Mr. FASCELL (for himself, Mr. BROOMFIELD, and Mr. BERMAN) introduced the
following bill; which was referred jointly to the Committees on Foreign
Affairs, Banking, Finance and Urban Affairs, Public Works and Transportation,
and Ways and Means
A BILL
To prevent the proliferation of biological and chemical weapons.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Chemical and Biological Weapons Control and
  Warfare Elimination Act of 1991'.
SEC. 2. PURPOSES.
  The purposes of this Act are--
  (1) to mandate United States sanctions, and to encourage international
  sanctions, against countries that use chemical or biological weapons in
  violation of international law or use lethal chemical or biological weapons
  against their own nationals, and to impose sanctions against companies
  that aid in the proliferation of chemical and biological weapons;
  (2) to support multilaterally coordinated efforts to control the
  proliferation of chemical and biological weapons;
  (3) to urge continued close cooperation with the Australia Group and
  cooperation with other supplier nations to devise ever more effective
  controls on the transfer of materials, equipment, and technology applicable
  to chemical or biological weapons production; and
  (4) to require Presidential reports on efforts that threaten United States
  interests or regional stability by Iran, Iraq, Syria, Libya, and others
  to acquire the materials and technology to develop, produce, stockpile,
  deliver, transfer, or use chemical or biological weapons.
SEC. 3. MULTILATERAL EFFORTS.
  (a) MULTILATERAL CONTROLS ON PROLIFERATION- It is the policy of the United
  States to seek multilaterally coordinated efforts with other countries to
  control the proliferation of chemical and biological weapons. In furtherance
  of this policy, the United States shall--
  (1) promote agreements banning the transfer of missiles suitable for
  armament with chemical or biological warheads;
  (2) set as a top priority the early conclusion of a comprehensive global
  agreement banning the use, development, production, and stockpiling of
  chemical weapons;
  (3) seek and support effective international means of monitoring and
  reporting regularly on commerce in equipment, materials, and technology
  applicable to the attainment of a chemical or biological weapons capability;
  and
  (4) pursue and give full support to multilateral sanctions pursuant to United
  Nations Security Council Resolution 620, which declared the intention of the
  Security Council to give immediate consideration to imposing `appropriate
  and effective' sanctions against any country which uses chemical weapons
  in violation of international law.
  (b) MULTILATERAL CONTROLS ON CHEMICAL AGENTS, PRECURSORS, AND EQUIPMENT- It
  is also the policy of the United States to strengthen efforts to control
  chemical agents, precursors, and equipment by taking all appropriate
  multilateral diplomatic measures--
  (1) to continue to seek a verifiable global ban on chemical weapons at
  the 40 nation Conference on Disarmament in Geneva;
  (2) to support the Australia Group's objective to support the norms and
  restraints against the spread and the use of chemical warfare, to advance the
  negotiation of a comprehensive ban on chemical warfare by taking appropriate
  measures, and to protect the Australia Group's domestic industries against
  inadvertent association with supply of feedstock chemical equipment that
  could be misused to produce chemical weapons;
  (3) to implement paragraph (2) by proposing steps complementary to, and not
  mutually exclusive of, existing multilateral efforts seeking a verifiable
  ban on chemical weapons, such as the establishment of--
  (A) a harmonized list of export control rules and regulations to prevent
  relative commercial advantage and disadvantages accruing to Australia
  Group members,
  (B) liaison officers to the Australia Group's coordinating entity from
  within the diplomatic missions,
  (C) a close working relationship between the Australia Group and industry,
  (D) a public unclassified warning list of controlled chemical agents,
  precursors, and equipment,
  (E) information-exchange channels of suspected proliferants,
  (F) a `denial' list of firms and individuals who violate the Australia
  Group's export control provisions, and
  (G) broader cooperation between the Australia Group and other countries
  whose political commitment to stem the proliferation of chemical weapons
  is similar to that of the Australia Group; and
  (4) to adopt the imposition of stricter controls on the export of chemical
  agents, precursors, and equipment and to adopt tougher multilateral
  sanctions against firms and individuals who violate these controls or
  against countries that use chemical weapons.
SEC. 4. UNITED STATES EXPORT CONTROLS.
  (a) IN GENERAL- The President shall--
  (1) use the authorities of the Arms Export Control Act to control the
  export of those defense articles and defense services, and
  (2) use the authorities of the Export Administration Act of 1979 to control
  the export of those goods and technology,
that the President determines would assist the government of any foreign
country in acquiring the capability to develop, produce, stockpile, deliver,
or use chemical or biological weapons.
  (b) EXPORT ADMINISTRATION ACT- Section 6 of the Export Administration Act
  of 1979 (50 U.S.C. App. 2405) is amended--
  (1) by redesignating subsections (m) through (r) as subsections (n) through
  (s), respectively; and
  (2) by inserting after subsection (l) the following:
  `(m) CHEMICAL AND BIOLOGICAL WEAPONS-
  `(1) ESTABLISHMENT OF LIST- The Secretary, in consultation with the Secretary
  of State, the Secretary of Defense, and the heads of other appropriate
  departments and agencies, shall establish and maintain, as part of the
  list maintained under this section, a list of goods and technology that
  would directly and substantially assist a foreign government or group
  in acquiring the capability to develop, produce, stockpile, or deliver
  chemical or biological weapons, the licensing of which would be effective
  in barring acquisition or enhancement of such capability.
  `(2) REQUIREMENT FOR VALIDATED LICENSES- The Secretary shall require
  a validated license for any export of goods or technology on the list
  established under paragraph (1) to any country of concern.
  `(3) COUNTRIES OF CONCERN- For purposes of paragraph (2), the term `country
  of concern' means any country other than--
  `(A) a country with whose government the United States has entered into a
  bilateral or multilateral arrangement for the control of goods or technology
  on the list established under paragraph (1); and
  `(B) such other countries as the Secretary of State, in consultation with
  the Secretary and the Secretary of Defense, shall designate consistent with
  the purposes of the Chemical and Biological Weapons Control and Warfare
  Elimination Act of 1991.'.
SEC. 5. SANCTIONS AGAINST CERTAIN FOREIGN PERSONS.
  (a) AMENDMENT TO EXPORT ADMINISTRATION ACT- The Export Administration Act
  of 1979 is amended by inserting after section 11B the following:
`CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION SANCTIONS
  `SEC. 11C. (a) IMPOSITION OF SANCTIONS-
  `(1) DETERMINATION BY THE PRESIDENT- (A) Except as provided in subsection
  (b)(2), the President shall impose both of the sanctions described in
  subsection (c) if the President determines that a foreign person, on
  or after the date of the enactment of this section, has knowingly and
  materially contributed--
  `(A) through the export from the United States of any goods or technology
  that are subject to the jurisdiction of the United States under this Act, or
  `(B) through the export from any other country of any goods or technology
  that would be, if they were United States goods or technology, subject to
  the jurisdiction of the United States under this Act,
to the efforts by any foreign country, project, or entity described in
paragraph (2) to use, develop, produce, stockpile, or otherwise acquire
chemical or biological weapons.
  `(2) COUNTRIES, PROJECTS, OR ENTITIES RECEIVING ASSISTANCE- Paragraph (1)
  applies in the case of--
  `(A) any foreign country that the President determines has, at any time
  after January 1, 1980--
  `(i) used chemical or biological weapons in violation of international law;
  `(ii) used lethal chemical or biological weapons against its own nationals;
  or
  `(iii) made substantial preparations to engage in the activities described
  in clause (i) or (ii);
  `(B) any foreign country whose government is determined for purposes of
  section 6(j) of this Act to be a government that has repeatedly provided
  support for acts of international terrorism; or
  `(C) any other foreign country, project, or entity designated by the
  President for purposes of this section.
  `(3) PERSONS AGAINST WHICH SANCTIONS ARE TO BE IMPOSED- Sanctions shall
  be imposed pursuant to paragraph (1) on--
  `(A) the foreign person with respect to which the President makes the
  determination described in that paragraph;
  `(B) any successor entity to that foreign person;
  `(C) any foreign person that is a parent or subsidiary of that foreign
  person if that parent or subsidiary knowingly assisted in the activities
  which were the basis of that determination; and
  `(D) any foreign person that is an affiliate of that foreign person if
  that affiliate knowingly assisted in the activities which were the basis
  of that determination and if that affiliate is controlled in fact by that
  foreign person.
  `(b) CONSULTATIONS WITH AND ACTIONS BY FOREIGN GOVERNMENT OF JURISDICTION-
  `(1) CONSULTATIONS- If the President makes the determinations described
  in subsection (a)(1) with respect to a foreign person, the Congress urges
  the President to initiate consultations immediately with the government
  with primary jurisdiction over that foreign person with respect to the
  imposition of sanctions pursuant to this section.
  `(2) ACTIONS BY GOVERNMENT OF JURISDICTION- In order to pursue such
  consultations with that government, the President may delay imposition of
  sanctions pursuant to this section for a period of up to 90 days. Following
  these consultations, the President shall impose sanctions unless the
  President determines and certifies to the Congress that that government
  has taken specific and effective actions, including appropriate penalties,
  to terminate the involvement of the foreign person in the activities
  described in subsection (a)(1). The President may delay imposition of
  sanctions for an additional period of up to 90 days if the President
  determines and certifies to the Congress that that government is in the
  process of taking the actions described in the preceding sentence.
  `(3) REPORT TO CONGRESS- The President shall report to the Congress, not
  later than 90 days after making a determination under subsection (a)(1),
  on the status of consultations with the appropriate government under this
  subsection, and the basis for any determination under paragraph (2) of
  this subsection that such government has taken specific corrective actions.
  `(c) SANCTIONS-
  `(1) DESCRIPTION OF SANCTIONS- The sanctions to be imposed pursuant
  to subsection (a)(1) are, except as provided in paragraph (2) of this
  subsection, the following:
  `(A) PROCUREMENT SANCTION- The United States Government shall not procure,
  or enter into any contract for the procurement of, any goods or services
  from any person described in subsection (a)(3).
  `(B) IMPORT SANCTIONS- The importation into the United States of products
  produced by any person described in subsection (a)(3) shall be prohibited.
  `(2) EXCEPTIONS- The President shall not be required to apply or maintain
  sanctions under this section--
  `(A) in the case of procurement of defense articles or defense services--
  `(i) under existing contracts or subcontracts, including the exercise of
  options for production quantities to satisfy United States operational
  military requirements;
  `(ii) if the President determines that the person or other entity to
  which the sanctions would otherwise be applied is a sole source supplier
  of the defense articles or services, that the defense articles or services
  are essential, and that alternative sources are not readily or reasonably
  available; or
  `(iii) if the President determines that such articles or services are
  essential to the national security under defense coproduction agreements;
  `(B) to products or services provided under contracts entered into before
  the date on which the President publishes his intention to impose sanctions;
  `(C) to--
  `(i) spare parts,
  `(ii) component parts, but not finished products, essential to United
  States products or production, or
  `(iii) routine servicing and maintenance of products, to the extent that
  alternative sources are not readily or reasonably available;
  `(D) to information and technology essential to United States products or
  production; or
  `(E) to medical or other humanitarian items.
  `(d) TERMINATION OF SANCTIONS- The sanctions imposed pursuant to this section
  shall apply for a period of at least 12 months following the imposition
  of sanctions and shall cease to apply thereafter only if the President
  determines and certifies to the Congress that reliable information indicates
  that the foreign person with respect to which the determination was made
  under subsection (a)(1) has ceased to aid or abet any foreign government,
  project, or entity in its efforts to acquire chemical or biological weapons
  capability as described in that subsection.
  `(e) WAIVER-
  `(1) CRITERION FOR WAIVER- The President may waive the application of any
  sanction imposed on any person pursuant to this section, after the end
  of the 12-month period beginning on the date on which that sanction was
  imposed on that person, if the President determines and certifies to the
  Congress that such waiver is important to the national security interests
  of the United States.
  `(2) NOTIFICATION OF AND REPORT TO CONGRESS- If the President decides to
  exercise the waiver authority provided in paragraph (1), the President
  shall so notify the Congress not less than 20 days before the waiver
  takes effect. Such notification shall include a report fully articulating
  the rationale and circumstances which led the President to exercise the
  waiver authority.
  `(f) DEFINITION OF FOREIGN PERSON- For the purposes of this section,
  the term `foreign person' means--
  `(1) an individual who is not a citizen of the United States or an alien
  admitted for permanent residence to the United States; or
  `(2) a corporation, partnership, or other entity which is created or
  organized under the laws of a foreign country or which has its principal
  place of business outside the United States.'.
  (b) AMENDMENT TO ARMS EXPORT CONTROL ACT- The Arms Export Control Act is
  amended by inserting after chapter 7 the following:
`CHAPTER 8--CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION
`SEC. 81. SANCTIONS AGAINST CERTAIN FOREIGN PERSONS.
  `(a) IMPOSITION OF SANCTIONS-
  `(1) DETERMINATION BY THE PRESIDENT- (A) Except as provided in subsection
  (b)(2), the President shall impose both of the sanctions described in
  subsection (c) if the President determines that a foreign person, on
  or after the date of the enactment of this section, has knowingly and
  materially contributed--
  `(A) through the export from the United States of any goods or technology
  that are subject to the jurisdiction of the United States,
  `(B) through the export from any other country of any goods or technology
  that would be, if they were United States goods or technology, subject to
  the jurisdiction of the United States, or
  `(C) through any other transaction not subject to sanctions pursuant to
  the Export Administration Act of 1979,
to the efforts by any foreign country, project, or entity described in
paragraph (2) to use, develop, produce, stockpile, or otherwise acquire
chemical or biological weapons.
  `(2) COUNTRIES, PROJECTS, OR ENTITIES RECEIVING ASSISTANCE- Paragraph (1)
  applies in the case of--
  `(A) any foreign country that the President determines has, at any time
  after January 1, 1980--
  `(i) used chemical or biological weapons in violation of international law;
  `(ii) used lethal chemical or biological weapons against its own nationals;
  or
  `(iii) made substantial preparations to engage in the activities described
  in clause (i) or (ii);
  `(B) any foreign country whose government is determined for purposes of
  section 6(j) of the Export Administration Act of 1979 (50 U.S.C. 2405(j))
  to be a government that has repeatedly provided support for acts of
  international terrorism; or
  `(C) any other foreign country, project, or entity designated by the
  President for purposes of this section.
  `(3) PERSONS AGAINST WHOM SANCTIONS ARE TO BE IMPOSED- Sanctions shall be
  imposed pursuant to paragraph (1) on--
  `(A) the foreign person with respect to which the President makes the
  determination described in that paragraph;
  `(B) any successor entity to that foreign person;
  `(C) any foreign person that is a parent or subsidiary of that foreign
  person if that parent or subsidiary knowingly assisted in the activities
  which were the basis of that determination; and
  `(D) any foreign person that is an affiliate of that foreign person if
  that affiliate knowingly assisted in the activities which were the basis
  of that determination and if that affiliate is controlled in fact by that
  foreign person.
  `(b) CONSULTATIONS WITH AND ACTIONS BY FOREIGN GOVERNMENT OF JURISDICTION-
  `(1) CONSULTATIONS- If the President makes the determinations described
  in subsection (a)(1) with respect to a foreign person, the Congress urges
  the President to initiate consultations immediately with the government
  with primary jurisdiction over that foreign person with respect to the
  imposition of sanctions pursuant to this section.
  `(2) ACTIONS BY GOVERNMENT OF JURISDICTION- In order to pursue such
  consultations with that government, the President may delay imposition of
  sanctions pursuant to this section for a period of up to 90 days. Following
  these consultations, the President shall impose sanctions unless the
  President determines and certifies to the Congress that that government
  has taken specific and effective actions, including appropriate penalties,
  to terminate the involvement of the foreign person in the activities
  described in subsection (a)(1). The President may delay imposition of
  sanctions for an additional period of up to 90 days if the President
  determines and certifies to the Congress that that government is in the
  process of taking the actions described in the preceding sentence.
  `(3) REPORT TO CONGRESS- The President shall report to the Congress, not
  later than 90 days after making a determination under subsection (a)(1),
  on the status of consultations with the appropriate government under this
  subsection, and the basis for any determination under paragraph (2) of
  this subsection that such government has taken specific corrective actions.
  `(c) SANCTIONS-
  `(1) DESCRIPTION OF SANCTIONS- The sanctions to be imposed pursuant
  to subsection (a)(1) are, except as provided in paragraph (2) of this
  subsection, the following:
  `(A) PROCUREMENT SANCTION- The United States Government shall not procure,
  or enter into any contract for the procurement of, any goods or services
  from any person described in subsection (a)(3).
  `(B) IMPORT SANCTIONS- The importation into the United States of products
  produced by any person described in subsection (a)(3) shall be prohibited.
  `(2) EXCEPTIONS- The President shall not be required to apply or maintain
  sanctions under this section--
  `(A) in the case of procurement of defense articles or defense services--
  `(i) under existing contracts or subcontracts, including the exercise of
  options for production quantities to satisfy United States operational
  military requirements;
  `(ii) if the President determines that the person or other entity to
  which the sanctions would otherwise be applied is a sole source supplier
  of the defense articles or services, that the defense articles or services
  are essential, and that alternative sources are not readily or reasonably
  available; or
  `(iii) if the President determines that such articles or services are
  essential to the national security under defense coproduction agreements;
  `(B) to products or services provided under contracts entered into before
  the date on which the President publishes his intention to impose sanctions;
  `(C) to--
  `(i) spare parts,
  `(ii) component parts, but not finished products, essential to United
  States products or production, or
  `(iii) routine servicing and maintenance of products, to the extent that
  alternative sources are not readily or reasonably available;
  `(D) to information and technology essential to United States products or
  production; or
  `(E) to medical or other humanitarian items.
  `(d) TERMINATION OF SANCTIONS- The sanctions imposed pursuant to this section
  shall apply for a period of at least 12 months following the imposition
  of sanctions and shall cease to apply thereafter only if the President
  determines and certifies to the Congress that reliable information indicates
  that the foreign person with respect to which the determination was made
  under subsection (a)(1) has ceased to aid or abet any foreign government,
  project, or entity in its efforts to acquire chemical or biological weapons
  capability as described in that subsection.
  `(e) WAIVER-
  `(1) CRITERION FOR WAIVER- The President may waive the application of any
  sanction imposed on any person pursuant to this section, after the end
  of the 12-month period beginning on the date on which that sanction was
  imposed on that person, if the President determines and certifies to the
  Congress that such waiver is important to the national security interests
  of the United States.
  `(2) NOTIFICATION OF AND REPORT TO CONGRESS- If the President decides to
  exercise the waiver authority provided in paragraph (1), the President
  shall so notify the Congress not less than 20 days before the waiver
  takes effect. Such notification shall include a report fully articulating
  the rationale and circumstances which led the President to exercise the
  waiver authority.
  `(f) DEFINITION OF FOREIGN PERSON- For the purposes of this section,
  the term `foreign person' means--
  `(1) an individual who is not a citizen of the United States or an alien
  admitted for permanent residence to the United States; or
  `(2) a corporation, partnership, or other entity which is created or
  organized under the laws of a foreign country or which has its principal
  place of business outside the United States.'.
SEC. 6. DETERMINATIONS REGARDING USE OF CHEMICAL OR BIOLOGICAL WEAPONS.
  (a) DETERMINATION BY THE PRESIDENT-
  (1) WHEN DETERMINATION REQUIRED; NATURE OF DETERMINATION- Whenever
  persuasive information becomes available to the executive branch indicating
  the substantial possibility that, on or after the date of the enactment
  of this Act, the government of a foreign country has made substantial
  preparation to use or has used chemical or biological weapons, the
  President shall, within 60 days after the receipt of such information by
  the executive branch, determine whether that government, on or after such
  date of enactment, has used chemical or biological weapons in violation
  of international law or has used lethal chemical or biological weapons
  against its own nationals. Section 7 applies if the President determines
  that that government has so used chemical or biological weapons.
  (2) MATTERS TO BE CONSIDERED- In making the determination under paragraph
  (1), the President shall consider the following:
  (A) All physical and circumstantial evidence available bearing on the
  possible use of such weapons.
  (B) All information provided by alleged victims, witnesses, and independent
  observers.
  (C) The extent of the availability of the weapons in question to the
  purported user.
  (D) All official and unofficial statements bearing on the possible use of
  such weapons.
  (E) Whether, and to what extent, the government in question is willing
  to honor a request from the Secretary General of the United Nations to
  grant timely access to a United Nations fact-finding team to investigate
  the possibility of chemical or biological weapons use or to grant such
  access to other legitimate outside parties.
  (3) DETERMINATION TO BE REPORTED TO CONGRESS- Upon making a determination
  under paragraph (1), the President shall promptly report that determination
  to the Congress. If the determination is that a foreign government had
  used chemical or biological weapons as described in that paragraph, the
  report shall specify the sanctions to be imposed pursuant to section 7.
  (b) CONGRESSIONAL REQUESTS; REPORT-
  (1) REQUEST- The Chairman of the Committee on Foreign Relations of the Senate
  (upon consultation with the ranking minority member of such committee) or the
  Chairman of the Committee on Foreign Affairs of the House of Representatives
  (upon consultation with the ranking minority member of such committee)
  may at any time request the President to consider whether a particular
  foreign government, on or after the date of the enactment of this Act,
  has used chemical or biological weapons in violation of international law
  or has used lethal chemical or biological weapons against its own nationals.
  (2) REPORT TO CONGRESS- Not later than 60 days after receiving such a
  request, the President shall provide to the Chairman of the Committee on
  Foreign Relations of the Senate and the Chairman of the Committee on Foreign
  Affairs of the House of Representatives a written report on the information
  held by the executive branch which is pertinent to the issue of whether the
  specified government, on or after the date of the enactment of this Act,
  has used chemical or biological weapons in violation of international
  law or has used lethal chemical or biological weapons against its own
  nationals. This report shall contain an analysis of each of the items
  enumerated in subsection (a)(2).
SEC. 7. SANCTIONS AGAINST USE OF CHEMICAL OR BIOLOGICAL WEAPONS.
  (a) INITIAL SANCTIONS- If, at any time, the President makes a determination
  pursuant to section 6(a)(1) with respect to the government of a foreign
  country, the President shall forthwith impose the following sanctions:
  (1) FOREIGN ASSISTANCE- The United States Government shall terminate
  assistance to that country under the Foreign Assistance Act of 1961,
  except for urgent humanitarian assistance and food or other agricultural
  commodities or products.
  (2) ARMS SALES- The United States Government shall terminate--
  (A) sales to that country under the Arms Export Control Act of any defense
  articles, defense services, or design and construction services, and
  (B) licenses for the export to that country of any item on the United
  States Munitions List.
  (3) ARMS SALES FINANCING- The United States Government shall terminate
  all foreign military financing for that country under the Arms Export
  Control Act.
  (4) DENIAL OF UNITED STATES GOVERNMENT CREDIT OR OTHER FINANCIAL ASSISTANCE-
  The United States Government shall deny to that country any credit,
  credit guarantees, or other financial assistance by any department,
  agency, or instrumentality of the United States Government, including the
  Export-Import Bank of the United States.
  (5) EXPORTS OF NATIONAL SECURITY-SENSITIVE GOODS AND TECHNOLOGY- The
  authorities of section 6 of the Export Administration Act of 1979 (50
  U.S.C. 2405) shall be used to prohibit the export to that country of any
  goods or technology on that part of the control list established under
  section 5(c)(1) of that Act (22 U.S.C. 2404(c)(1)).
  (b) ADDITIONAL SANCTIONS IF CERTAIN CONDITIONS NOT MET-
  (1) PRESIDENTIAL DETERMINATION- Unless, within 3 months after making
  a determination pursuant to section 6(a)(1) with respect to a foreign
  government, the President determines and certifies in writing to the
  Congress that--
  (A) that government is no longer using chemical or biological weapons
  in violation of international law or using lethal chemical or biological
  weapons against its own nationals,
  (B) that government has provided reliable assurances that it will not in
  the future engage in any such activities, and
  (C) that government is willing to allow on-site inspections by United
  Nations observers or other internationally recognized, impartial observers,
  or other reliable means exist, to ensure that that government is not using
  chemical or biological weapons in violation of international law and is
  not using lethal chemical or biological weapons against its own nationals,
then the President, after consultation with the Congress, shall impose on
that country the sanctions set forth in at least 3 of subparagraphs (A)
through (F) of paragraph (2).
  (2) SANCTIONS- The sanctions referred to in paragraph (1) are the following:
  (A) MULTILATERAL DEVELOPMENT BANK ASSISTANCE- The United States Government
  shall oppose, in accordance with section 701 of the International Financial
  Institutions Act (22 U.S.C. 262d), the extension of any loan or financial or
  technical assistance to that country by international financial institutions.
  (B) BANK LOANS- The United States Government shall prohibit any United
  States bank from making any loan or providing any credit to the government
  of that country, except for loans or credits for the purpose of purchasing
  food or other agricultural commodities or products.
  (C) FURTHER EXPORT RESTRICTIONS- The authorities of section 6 of the
  Export Administration Act of 1979 shall be used to prohibit exports to
  that country of all other goods and technology (excluding food and other
  agricultural commodities and products).
  (D) IMPORT RESTRICTIONS- Restrictions shall be imposed on the importation
  into the United States of articles (which may include petroleum or any
  petroleum product) that are the growth, product, or manufacture of that
  country.
  (E) DIPLOMATIC RELATIONS- The President shall use his constitutional
  authorities to downgrade or suspend diplomatic relations between the United
  States and the government of that country.
  (F) LANDING RIGHTS- At the earliest practicable date, the United States
  Government shall terminate, consistent with international law, the authority
  of any air carrier which is controlled in fact by the government of that
  country to engage in air transportation (as defined in section 101(10)
  of the Federal Aviation Act of 1958 (49 U.S.C. App. 1301(10))).
  (c) REMOVAL OF SANCTIONS- The President shall remove the sanctions imposed
  with respect to a country pursuant to this section if the President
  determines and so certifies to the Congress, after the end of the 12-month
  period beginning on the date on which sanctions were initially imposed on
  that country pursuant to subsection (a), that--
  (1) the government of that country has provided reliable assurances that it
  will not use chemical or biological weapons in violation of international
  law and will not use lethal chemical or biological weapons against its
  own nationals;
  (2) that government is not making preparations to use chemical or biological
  weapons in violation of international law or to use lethal chemical or
  biological weapons against its own nationals;
  (3) that government is willing to allow on-site inspections by United
  Nations observers or other internationally recognized, impartial observers
  to verify that it is not making preparations to use chemical or biological
  weapons in violation of international law or to use lethal chemical or
  biological weapons against its own nationals, or other reliable means
  exist to verify that it is not making such preparations; and
  (4) that government is making restitution to those affected by any use
  of chemical or biological weapons in violation of international law or by
  any use of lethal chemical or biological weapons against its own nationals.
  (d) WAIVER-
  (1) CRITERIA FOR WAIVER- The President may waive the application of any
  sanction imposed with respect to a country pursuant to this section--
  (A) if the President determines and certifies to the Congress that such
  waiver is essential to the national security interests of the United States,
  and if the President notifies the Committee on Foreign Relations of the
  Senate and the Committee on Foreign Affairs of the House of Representatives
  of his determination and certification at least 15 days before the waiver
  takes effect, in accordance with the procedures applicable to reprogramming
  notifications under section 634A of the Foreign Assistance Act of 1961,
  except that such procedures shall not apply to a waiver of the sanction
  specified in subsection (b)(2)(E) (relating to the downgrading or suspension
  of diplomatic relations); or
  (B) if the President determines and certifies to the Congress that there has
  been a fundamental change in the leadership and policies of the government
  of that country, and if the President notifies the Congress at least 20
  days before the waiver takes effect.
  (2) REPORT- In the event that the President decides to exercise the
  waiver authority provided in paragraph (1) with respect to a country, the
  President's notification to the Congress under such paragraph shall include
  a report fully articulating the rationale and circumstances which led the
  President to exercise that waiver authority, including a description of
  the steps which the government of that country has taken to satisfy the
  conditions set forth in paragraphs (1) through (4) of subsection (c).
  (e) CONTRACT SANCTITY-
  (1) SANCTIONS NOT APPLIED TO EXISTING CONTRACTS- (A) A sanction described
  in paragraph (4) or (5) of subsection (a) or in any of subparagraphs (A)
  through (D) of subsection (b)(2) shall not apply to any activity pursuant
  to any contract or international agreement entered into before the date of
  the presidential determination under section 6(a)(1) unless the President
  determines, on a case-by-case basis, that to apply such sanction to
  that activity would prevent the performance of a contract or agreement
  that would have the effect of assisting a country in using chemical or
  biological weapons in violation of international law or in using lethal
  chemical or biological weapons against its own nationals.
  (B) The same restrictions of subsection (p) of section 6 of the Export
  Administration Act of 1979 (50 U.S.C. App. 2405), as that subsection is so
  redesignated by section 4(b) of this Act, which are applicable to exports
  prohibited under section 6 of that Act shall apply to exports prohibited
  under subsection (a)(5) or (b)(2)(C) of this section. For purposes of
  this subparagraph, any contract or agreement the performance of which
  (as determined by the President) would have the effect of assisting a
  foreign government in using chemical or biological weapons in violation of
  international law or in using lethal chemical or biological weapons against
  its own nationals shall be treated as constituting a breach of the peace that
  poses a serious and direct threat to the strategic interest of the United
  States, within the meaning of subparagraph (A) of section 6(p) of that Act.
  (2) SANCTIONS APPLIED TO EXISTING CONTRACTS- The sanctions described in
  paragraphs (1), (2), and (3) of subsection (a) shall apply to contracts,
  agreements, and licenses without regard to the date the contract or agreement
  was entered into or the license was issued (as the case may be), except
  that such sanctions shall not apply to any contract or agreement entered
  into or license issued before the date of the presidential determination
  under section 6(a)(1) if the President determines that the application of
  such sanction would be detrimental to the national security interests of
  the United States.
SEC. 8. PRESIDENTIAL REPORTING REQUIREMENTS.
  (a) REPORTS TO CONGRESS- Not later than 90 days after the date of the
  enactment of this Act, and every 12 months thereafter, the President shall
  transmit to the Congress a report which shall include--
  (1) a description of the actions taken to carry out this Act, including
  the amendments made by this Act;
  (2) a description of the current efforts of foreign countries and subnational
  groups to acquire equipment, materials, or technology to develop, produce,
  or use chemical or biological weapons, together with an assessment of the
  current and likely future capabilities of such countries and groups to
  develop, produce, stockpile, deliver, transfer, or use such weapons;
  (3) a description of--
  (A) the use of chemical weapons by foreign countries in violation of
  international law,
  (B) the use of chemical weapons by subnational groups,
  (C) substantial preparations by foreign countries and subnational groups
  to do so, and
  (D) the development, production, stockpiling, or use of biological weapons
  by foreign countries and subnational groups; and
  (4) a description of the extent to which foreign persons or governments
  have knowingly and materially assisted third countries or subnational
  groups to acquire equipment, material, or technology intended to develop,
  produce, or use chemical or biological weapons.
  (b) PROTECTION OF CLASSIFIED INFORMATION- To the extent practicable,
  reports submitted under subsection (a) or any other provision of this Act
  should be based on unclassified information. Portions of such reports may
  be classified.